Microsoft Triples Down on AI: A New Era of Software and Services
Microsoft intensifies its AI push with new products, pricing, and a focus on AI-powered development.
Matilda
Microsoft Triples Down on AI: A New Era of Software and Services
The year 2025 is shaping up to be a pivotal one for Microsoft, as the company accelerates its AI ambitions with a series of significant announcements. These moves, from the creation of a new AI-focused engineering division to the strategic bundling of AI features in its flagship products, signal a profound shift in Microsoft's approach to software and services. The Rise of AI-First Development: Microsoft's decision to combine its Dev Div (developer division) and AI platform teams into a new unit, CoreAI – Platform and Tools, underscores the company's recognition that AI is no longer a peripheral technology, but the very foundation of future software development. Led by former Meta engineering chief Jay Parikh, this new division will be responsible for building the AI-powered tools and platforms that will shape the future of both Microsoft's own products and those of its customers. CEO Satya Nadella envisions a future where AI agents, essentially virtual employees capable …